Coinbase to offer token-backed mortgage down-payments

Cryptocurrency exchange Coinbase, in partnership with Better Home & Finance, plans to launch a mortgage structure by summer 2026 that will allow qualified borrowers to use digital assets like Bitcoin (BTC) and USDC as collateral for down payments on homes. This initiative follows a June 2025 directive from the US Federal Housing Finance Agency (FHFA) to Fannie Mae and Freddie Mac, instructing them to consider cryptocurrency as an asset in mortgage risk assessments without mandating conversion to fiat. Better founder and CEO Vishal Garg views this as a significant shift, enabling buyers who possess wealth in digital assets to overcome down payment hurdles. However, the move has drawn scrutiny from some US lawmakers, including five senators who sent a letter to FHFA head Bill Pulte in July 2025, expressing concerns that incorporating unconverted cryptocurrency assets could introduce risks to the housing market and the broader financial system. Republican lawmakers, such as crypto proponent Cynthia Lummis, have supported such policies, with Lummis proposing the 21st Century Mortgage Act to codify the FHFA order and adapt to modern financial needs.